(1) Except as provided in sub-rule (4), the Director General shall, on receipt of a written application by or on behalf of the domestic producer of like article or directly competitive article, initiate an investigation to determine the existence of "market disruption" or "threat of market disruption" to the domestic industry, caused by the import of an article in such increased quantities, absolute or relative to domestic production.

(2) An application under sub-rule (1) shall be in the form as may be specified by the Director General in this behalf and such application shall be supported by evidence of-

(i) increased imports;

(ii) "market disruption" or "threat of market disruption" to the domestic industry; and

(iii) a causal link between imports and the alleged "market disruption" or "threat of market disruption".

(3) The Director General shall not initiate an investigation pursuant to an application made under sub-rule (1) unless he examines the accuracy and adequacy of the evidence provided in the application and satisfies himself that there is sufficient evidence regarding .-

(a) increased imports;

(b) "market disruption" or "threat of market disruption"; and

(c) a causal link between increased imports and "alleged market disruption" or "threat of market disruption".

(4) Notwithstanding anything contained in sub-rule (1), the Director General may initiate an investigation suo motu if he is satisfied with the information received from any Principal Commissioner or Commissioner, as the case may be of Customs appointed under the Customs Act, 1962 (52 of 1962) or any other source that sufficient evidence exists as referred to in clause (a), clause (b) and clause (c) of sub-rule (3).